🦍 OBBB Hack: Don’t Miss the 100% Restaurant Meals Deduction — Go Back and Reclassify!

Jul 25

Remember when you thought only half your Chipotle counted as a write-off?
Turns out, the IRS just bought lunch for the whole jungle.

🍔 The Big Change: 100% Deductible Restaurant Meals (2025–2026)

Thanks to OBBB, all meals purchased at a restaurant (even takeout and delivery) are now 100% deductible from Jan 1, 2025 through Dec 31, 2026.

But here’s the gotcha:
If you’ve been classifying ALL meals as 50% deductible this year… it’s time to go back and fix it!

🥡 What To Do Now (Bookkeepers, Take Note!)

Review all 2025 meal expenses year-to-date
Look for vendors that are restaurants — YES, this includes Uber Eats, DoorDash, Grubhub, etc.
Confirm they meet the usual business meal test (client, prospect, team, business purpose)
Update your chart of accounts or tags:
- Restaurant meals: 100% deductible
- Grocery/in-house food: Still only 50% deductible

Example:

Chipotle for a staff meeting? 100%.
Costco sandwich tray? 50%.

🍕 Tax Planning Tip: Frontload Meals in 2026

The 100% rule expires after Dec 31, 2026
Plan team lunches, client dinners, prospect meetings before year-end 2026
Stock up on restaurant gift cards (for legit business purposes) before the deduction sunsets

🤖 Let Hedgi Do the Heavy Lifting

Hedgi’s AI automatically flags restaurant vendors (even via Yelp and POS integrations)
It reclassifies eligible meals as 100% deductible
Makes year-end CPA reviews and audits way easier (and a lot less wild)

🦔 Law Reminder (for the Pros)

Section 70421:
“...for amounts paid or incurred after December 31, 2024, and before January 1, 2027, the full amount of the expense for food or beverages provided by a restaurant shall be deductible.”

🎯 Bottom Line

Don’t leave half your lunch money on the table.
Go back, reclassify, and let Hedgi maximize your deduction.
(And if your accountant complains, send them a burrito.)

Jacob Schwartz